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CORDLIFE GROUP LIMITED
| ANNUAL REPORT 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.8 Investment properties
Investment properties are properties that are owned by the Group in order to earn rentals or for
capital appreciation, or both, rather than for use in the production or supply of goods or services, or
for administrative purposes, or in the ordinary course of business. Investment properties comprise
completed investment properties and properties that are being constructed or developed for future use
as investment properties. Properties held under operating leases are classified as investment properties
when the definition of investment properties is met and they are accounted for as finance leases.
Investment properties are initially measured at cost, including transaction costs. The carrying amount
includes the cost of replacing part of an existing investment property at the time that cost is incurred
if the recognition criteria are met.
Subsequent to initial recognition, investment properties are measured at fair value which reflects market
conditions at the end of the reporting period. Gains or losses arising from changes in the fair values of
investment properties are included in profit or loss in the year in which they arise.
Investment properties are derecognised when either they have been disposed of or when the
investment property is permanently withdrawn from use and no future economic benefit is expected
from its disposal. Any gain or loss on the retirement or disposal of an investment property is recognised
in profit or loss in the year of retirement or disposal.
Transfers are made to or from investment property only when there is a change in use. For a transfer
from investment property to owner-occupied property, the deemed cost for subsequent accounting is
the fair value at the date of change in use. For a transfer from owner-occupied property to investment
property, the property is accounted for in accordance with the accounting policy for property, plant
and equipment set out in Note 2.7 up to the date of change in use.
